Technical Update - FTSE 100 is looking at 7K
Kim Cramer Larsson
Technical Analyst, Saxo Bank
FTSE 100 bounced and spiked just above the 0.786 retracement at 7,483 before collapsing. Bear trend is resumed and test of support at around 7,135 within next few days is likely. A break below 7,135 June lows and strong support at 7K is to be tested.
RSI was rejected at 60 threshold i.e., still showing negative sentiment which is likely to be fueled if it breaks back below 40.
For FTSE 100 to reverse this bearish picture a close above 7,579 is needed.
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